The Organizational Change and Diversity Processes Within The Adidas-Group

By Victoria Fields

Article Overview- The Adidas organization, is a multi-organization that includes Reebok,

Taylor-Made, Rockport and various other brands that all aid in company being

one of the top sports brands in the world.

- The brand of Adidas began in the 1920’s and was created by Adi Dassler. He

embarked on his mission to provide athletes with the best possible

equipment.

- The Adidas world headquarters is very diverse and the company itself is

known to be the most LGBTQ friendly sports brand in world.

What is the Adidas-Group?- Adidas is a sports clothing manufacturer that was founded in 1948 by Adolf

“Adi” Dassler.

- The organization includes:

- 1. Reebok sportswear company

- 2. Taylor Made-Adidas golf company

- 3. Rockport.

The Complexity of Organizational Change- “No organization that remains static will survive” (Organizational

Communication, 2014).

- Organizational Life Cycles

- Start-Up Phase

- Growth Phase

- Decay Stage

Start Up Phase

- Occurs when a company develops a market and creates systems and procedures.

- Adidas start up phase began in a small town in Bavaria, Germany in 1924. After Adi Dassler developed shoes in his mother’s kitchen, he started to create his own shoe company called, “Adi Dassler adidas Sportschuhfabrik”.

- Several years later, he had 47 employees and began to embark on his mission to provide athletes with the best possible equipment.

- E.g., Gold medals in Amsterdam (1928, Lina Radke) and Berlin (1936, Jesse Owens) were the first rewards and milestones for the company.

Growth Phase- Occurs when client relationships are developed and the size of the company

grows.- The growth phase at Adidas began in the 1960’s and continues today.

- After their start up phase, Adidas began to expand their brand to athletes across the world and in return, athletes won in their shoes, which increased their brand-size even more.

- Additionally, over the years, Adidas has became a multi-organization; creating various brands under their original name (Reebok, Taylor Made, Rockport are to name a few).

- “The brands of the Adidas-Group complement each other in a unique way to help athletes perform better, play better, feel better” (Adidas-Group, 2017).

Growth Phase- Currently, the Adidas Group employs more than 55,000 people in over 160

countries (Statistica, 2017).- They produce more than 778 million product units every year and generated sales of $17

billion in 2015.

Decay Stage - Occurs when the firm’s services become less relevant to the marketplace and

the firm eventually folds or is bought by another company. - In the case of Adidas, record losses and near bankruptcy pushed the company to reconnect to

its past. - “In the late 1970s and 1980s, Nike’s rise gave Adidas a jolt. Adidas responded to these

new competitive pressures by pursuing growth frantically in new directions. The company was distracted and lost sight of the capabilities that had formed the backbone of its earlier success. Adidas would later experience a resurgence in the market, but only after it channeled its heritage” (Strategy Business, 2015).

- Hence, due to their authentic sports brands, innovation, and ability to change, Adidas was able to improve their organization, to keep up with their competition (Nike, Under Armour and Puma) and have avoided the decay stage.

Organizational Diversity- “As of 2012 report, the percentage of women in the U.S. workforce was 47%,

and it is anticipated that women will outnumber men in the workforce by 2020” (Burns, Barton & Kerby, 2012).

- “Additionally, as of 2012, 36% of the U.S workforce identified as member of minority group (e.g., Hispanic, African American, Asian American) and as the nation moves toward becoming a “majority-minority” nation, these groups’ participation in the labor force will continue to grow” (Organizational Communication, 2014).

Organizational Diversity within Adidas

- Adolf “Adi” Dassler built his business with an insight that is still true today:

“The more unique identities, backgrounds and perspectives we can assemble

at Adidas-Group, the easier it is to find our way around roadblocks and

change lives through the sports we love” (Adidas-Group, 2017).

- To attract a diverse team, Adidas creates an inclusive, respectful company culture.

- Their world headquarters has employees of 80 nationalities, are ranked one of the most

LGBT-friendly companies around, and is currently cultivating a gender-balanced

leadership within the company.

-

The Adidas-Group Core Values Directed Towards Diversity For All Employees and Clients

1. We recognize the wealth of similarities and differences between employees, and the personal value of each and every employee as well as the fact that these diverse and different perspectives enrich our products and our contribution to sport and competing athletes.

2. We strive for mutual respect and appreciation, more diversity in the Adidas- Group as well as for open-mindedness and partnership between our employees and within our social environment.

3. We work proactively to create an environment that welcomes, respects and embraces diversity to benefit from the value of a diverse workforce and to ensure that our employees and our products are at the top of their game.

Multicultural Organizations- “Multicultural organizations move beyond the concept of support for minority

members to the institution of policies that deliberately capitalize on cultural

and gender diversity” (Organizational Communication, 2014).

The Dimensions For Describing The Adidas-Group as a Multicultural Organization

- Organizational Identification - Feelings of belonging, loyalty, and commitment to the organization.

- At the Adidas-Group organization, they make it a priority to understand why every employee is part of their company, what their needs are and how they can aid them in reaching their full potential.

- They want to provide a choice to all of their employees that enables them to find their own way within the Adidas-Group, “Based on their individual background and not force-fitting them into a pre-selected path that is not flexible and transparent” (Adidas-Group, 2017).

- Overall, Adidas-Group provides an environment where employees feel comfortable and stable. In return, the employees show loyalty and commitment to the organization.

The Dimensions For Describing The Adidas-Group as a Multicultural Organization

- Acculturation - Modes by which two groups adapt to each other and resolve cultural differences.

- Since the Adidas-Group is a global company, they attract employees from all nationalities across the world. Hence, they have required that all employees go through their intercultural communication and training program.

- “Our employees learn how to overcome possible challenges presented to them in an intercultural working environment by communicating with each other. In the end, creativity can only fully evolve when disagreements or conflicts are handled appropriately and with mutual respect” (Adidas-Group, 2017).

How The Adidas-Group uses a Systems Approach in Organizational Diversity

- Systems Approach: Diversity would be seen as one avenue for the organization to adapt effectively to a turbulent global environment.

- For example, the Adidas-Group has used diversity to overcome competitive obstacles and avoid the decay stage:

- They have hired and signed employees and clients of various ethnicities and backgrounds.

- They actively supports the LGBTQ Community (including their employees and clients).- 57% of employees are women.

Questions- In what ways can the Adidas-Group increase their organizational diversity in

regards to employees, clients and consumers?

- Which demographic currently benefits from Adidas-Group’s current

organizational diversity plan and why?

Questions- In what ways can the Adidas-Group further their organizational change and

how will that make them the #1 Sports Brand in the world?

- What organizational leadership qualities are missing from the Adidas-Group

and how can they improve them?

Suggestions- I would suggest that the Adidas-Group continues to strive for diversity and

inclusion in the company, especially because the demographics are

constantly changing all over the world.

- I would also suggest that the organization explores new routes of change. For

example, instead of looking at the past, look towards the future and become

ahead of the curve.

Suggestions - To expand their brands, the Adidas-Group should conduct outreach

programs, such as internship programs, scholarships, targeting recruitment in

the community, and lectures at schools.

- It’s very important to show children that there are other avenues to take,

besides being an athlete, that can lead to a successful career in the

sports industry.

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"History." Adidas Group. Web. 30 Mar. 2017.

Ind, Nicholas, Oriol Iglesias, and Majken Schultz. "How Adidas Found Its Second Wind." Strategy+business. N.p., 24 Aug.

2015. Web. 30 Mar. 2017.

Miller, Katherine. Organizational Communication: Approaches and Processes. Stamford, CT: Cengage Learning, 2014.

Print.

Phelps, Stan. "Culture Is King: Three Ways Adidas Is Striving to Build a Culture of Extraordinary." Forbes. Forbes

Magazine, 17 Apr. 2015. Web. 30 Mar. 2017.